A critique of the Diminishing Balance Method of Islamic home financing - Response
AbstractThis paper responds to the criticism of the Zubair Diminishing Balance model for Islamic home financing that Ahmad Kameel Meera published in the ISRA Journal. The response argues that most of the comments of Meera are frivolous and misplaced. It reiterates that the ZDBM is much different from other models; it is cheaper for the customer without being costlier to the bank, more efficient in resource allocation and improves liquidity in the financial system. However, the mathematical appendix is a positive contribution of Meera's paper.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43684.
Date of creation: 09 Jan 2013
Date of revision:
Islamic home financing; conventional model; BBA; MMP; ZDBM; Segmental murabahah;
Find related papers by JEL classification:
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-19 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hasan, Zubair, 2012. "Excel formula and Islamic norms for home financing," MPRA Paper 42835, University Library of Munich, Germany.
- Matthew Chambers & Carlos Garriga & Don Schlagenhauf, 2007. "Mortgage contracts and housing tenure decisions," Working Papers 2007-040, Federal Reserve Bank of St. Louis.
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